ABSTRACT
The post-communist members of the European Union (EU) have seen significant changes in their welfare regimes. While social policies can theoretically be paid for by various taxation mechanisms, the widespread adoption of flat-rate income tax has been seen as the hallmark of the overall liberalization' of state policies. Open method of coordination (OMC) suggests a certain methodological framework for capturing the developmental logic of the post-communist welfare state. The post-communist Member States oriented towards a very liberal' welfare state-and-taxation mix. This is a logical continuation of a trend observed in the region ever since the fall of communism. The challenge is to explain exactly the post-communist political economy where rise in the openness of economies goes parallel with efforts to scale down social protection. One approach that takes a very holistic view of society, with careful regard for the interplay between the economic and the social, is the French regulation school. In developed economies, Fordism increasingly gives way to post-Fordism.
